Boston, MA 04/25/2014 (wallstreetpr) – The challenge for Advanced Micro Devices, Inc. (NYSE:AMD) is to adapt to a post-PC world. But can a company which made its name competing making microprocessors and competing with Intel Corporation (NASDAQ:INTC) change and change sufficiently fast to make up for a consistently declining PC market with new growth areas such as chips for gaming devices and for servers?
Quarterly Loss
Reflecting the decline in its core PC microprocessor business, AMD reported a net loss of $20 million in 1Q2014, which was an improvement over the $146 million loss in 1Q2013. Revenues increased by an impressive 28% in 1Q2014 to reach $1.40 billion.
Gaming Processors
To counter the perennial decline in PCs, Advanced Micro Devices, Inc. (NYSE:AMD) is looking to make it big as a supplier of processors for game consoles from Microsoft Corporation (NASDAQ:MSFT) and Sony Corp (ADR) (NYSE:SNE).
Server Processors for Data Centers
For the ever growing data center market with its insatiable demand for servers, AMD is pushing its servers to compete with Intel’s high-end Xeon processors.
GPUs
With the launch of the R9 295X2, Advanced Micro Devices, Inc. (NYSE:AMD) has thrown the gauntlet to its competitors Intel and NVIDIA Corporation (NASDAQ;NVDA). This is nothing less than the world’s fastest graphics card and the likes of Nvidia have their work cut out since this was originally an area of expertise for them. The specs for this card are quite astounding with 8GB of GDDR5 onboard memory which will help make 4K gaming a reality. While it’s priced at $1,500, it’s still half of the $3,000 cost of the upcoming Titan Z by Nvidia. It remains to be seen whether consumers are willing to pay double the price for 12GB of RAM which is what the Nvidia GPU is rumored to have.
AMD has also showcased its Opteron X-Series APU (codename “Berlin”) and it will be launched later in 2014. AMD’s AM1 platform has also become globally available. It has also launched the AMD FirePro W9100 graphics card meant for 4K resolution workstations.
So, Advanced Micro Devices, Inc. (NYSE:AMD) is going full throttle to compete with the likes of Intel and others. The unpredictable elements include the global economic outlook which remains weak.
